“Getting what you deserve” by Nick Smith in today’s Independent (which isn’t, it’s Fairfax-owned) is a good read about the future of the media. In beautiful irony, it doesn’t seem to be online, so I’ll excerpt it here:
“Journalists deserve low pay” Robert Picard, media economics professor at Jonkoping University, Sweden, opined provocatively. “Wages are compensation for value creation and journalists simply aren’t creating much value these days.”
The alarming disappearance of papers and journalists (27,000 have lost their jobs in the US alone in the last 18 months) is, Picard argues, a result of loss of control of content.
Picard believes skilled journalists are not like skilled plumbers. Their skill is the distribution of other peoples’ knowledge. Now, that knowledge is distributed online at little cost, and control of the saleable commodity has disappeared. “The primary value created today comes from the basic underlying value of the labour of journalists. Unfortunately that value is now near zero.”
Rupert Murdoch, so often cast as the scourge of journalism, is shaping up as a white knight. His News Corp is to start charging for website content. … His determination to wrest control of content and ensure payment is significant. The Financial Times followed last week with its own iTunes-inspired business model Fairfax Media, Australia-based publisher of The Independent, is also said to be considering joining the pay-per-read campaign. If both follow through, every daily Australian newspaper, save the West Australian, will charge for at least some online reading. Fairfax chief executive Brian McCarthy’s comments that digital delivery must be monetised will cheer Barry Colman, publisher of the National Business Review, the only New Zealand website to charge a fee. Colman says a pay-per-view model is the only way to stop further newspaper losses and the erosion of quality.
[Edit: It’s online now. Thanks I/S.]
The problem with Murdoch, Colman and indeed the good professor whose quote leads the piece, is that they see news as a good; a thing which people should pay for. But really, it’s not a good – it’s a service.
Or more precisely, news text and information is a good, but it can’t readily be monetised – what can, and must, be monetised is the service of distributing and providing access to that good, and most critically, the service of filtering out all the stuff which is irrelevant. This is the service journalists provide – their real value isn’t, as Picard says, generating content in the paragraph factory, it’s in their role as decision-makers defining what is news and what isn’t, what people need to know about and what they don’t.
Murdoch and his cohort see the internet, which robs their ‘good’ of value, as a problem to be solved or circumvented. But the internet is the only thing which will allow for the establishment of a genuine service which will enable media companies to provide tailored, targeted content to individual readers.
Content can be free – but as the volume of content grows, the value of relevance increases. That’s where the money is.